Gross Profit Margin

Gross Profit Margin is a financial metric that shows the percentage of revenue a company retains as gross profit after deducting the cost of goods sold (COGS). It indicates how efficiently a company produces its products or provides its services. A higher gross profit margin suggests that a company retains more money from sales, which can be used for other expenses, investments, or profits. It’s calculated by dividing gross profit by total revenue and is usually expressed as a percentage. This metric helps assess a company’s financial health and operational efficiency.